Page 1 |
Previous | 1 of 2 | Next |
|
This page
All
Subset
|
4 HASKINS & SELLS July Classification and Appropriate Certificates THE IDEA of classifying accountancy services originated some seven years ago. A palpable need preceded the idea. The need was for some device which would overcome confusion. The results of confusion were wasted time, unnecessary expense, and annoyance. The confusion arose from diversity in technical concept, technical performance, understanding, undertaking, and reference in relation to professional engagements. Those who contributed to the diversity were principals who took engagements from clients, supervisors who observed the execution, in-charge accountants who planned and gave instructions to assistants concerning the work, and general executives charged with technical administration of the organization as a whole. The results of diversity were conflicting opinions, uncertainty as to technical policy, unwillingness to accept responsibility, un-evenness in service and reports. Each practice office served its clients, according to the best judgment of those responsible for the office. Each accountant in charge of an engagement did the best he could under the circumstances, or as he was directed by his superior. How widely the judgment and direction differed is too sad a memory to be recalled or recounted. The correction of these conditions may be attributed to a service classification. The classification was conceived in theory. It was born in trial on five thousand engagements coming from all parts of the world and from all lines of business, as they flowed by a central point. Its practical usefulness has been demonstrated by application in some twenty-five thousand additional engagements. Few changes have been required since the classification was first prepared. Those were minor in character and were made in the early years. The organization now has a common language relating to engagements. Those who deal with engagements have only to learn the language. The newest member of the staff may learn in a short time as much about the firm's policy concerning classes and general specifications of work as the oldest accountant or executive. The person who takes an engagement from a client, whether the person is a staff accountant, or a partner; whether the client is an individual, or an officer of a corporation; whether the location is New York, or Shanghai, China, has a definite outline for discussion, a helpful guide in considering the client's needs, and a prescribed basis on which to arrange the undertaking, once the type of service desired is ascertained. With this start, uniformity follows naturally. The type of service is indicated by number and name on the engagement memorandum. Records are kept and statistics are compiled accordingly. A basis is afforded on each engagement for checking performance from executive offices, down the line through practice offices to the field where the engagement is in progress, and back, in reverse order, to culmination in reports. Technical administration is facilitated. Unnecessary discussion and correspondence are eliminated. Order replaces disorder. Every one has a standard for guidance. One particular advantage of service classification has been the almost complete disappearance of differences with clients concerning the kind of service undertaken. Clients understand now, apparently, that the greater the limitations placed by them on the scope and character of the work, the less chance the auditor has of uncovering irregularities, or discovering errors in principle and practice. This may be attributed to the fact that the classification is discussed with the client before he decides on the service to be engaged. Thus, he is afforded an opportunity of understanding the scope and limitations of the various
Object Description
Title |
Classification and appropriate certificates |
Author |
Anonymous |
Subject |
Accounting -- Classification |
Personal Name |
Carter, Arthur Hazelton |
Citation |
Haskins & Sells Bulletin, Vol. 14, no. 03 (1931 July), p. 4-5 |
Date-Issued | 1931 |
Source | Originally published by: Haskins & Sells |
Type | Text |
Collection | Deloitte Digital Collection |
Digital Publisher | University of Mississippi Libraries. Accounting Collection |
Date-Digitally Created | 2009 |
Identifier | hs bulletin 14-3-p4 |